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Voltalia SA (FR:VLTSA)
:VLTSA
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Voltalia
(VLTSA)
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Rating:60Neutral
Price Target:
€8.00
▲(8.40% Upside)
The score is primarily held back by financial sustainability concerns—recurring losses, high leverage, and negative free cash flow—despite good revenue growth and operational scale-up. Technical signals are mixed/neutral, and valuation is weakened by negative earnings. The earnings call adds moderate support from the SPRING transformation plan and EBITDA targets, but near-term losses and curtailment risks remain significant.
Positive Factors
Capacity and production growth
Sustained capacity and production growth supports durable revenue scaling and stronger project-level economics. Growing gigawatts under operation expands contracted cashflows via PPAs, raises utilization and bargaining power, and underpins mid-term targets for 2025 and beyond.
Operational margins
Relatively strong gross profit and EBITDA margins indicate efficient project operations and favorable unit economics across assets. Durable margins provide a buffer against commodity and volume variability and are key to achieving sustained profitability as capacity scales.
Strategic self‑financed growth plan (SPRING)
A formal SPRING plan targeting self‑financed 300–400 MW/yr growth reduces reliance on external equity, aligning capital allocation with cash generation. If executed, this enhances long-term capital discipline, lowers dilution risk and improves control of growth pace and returns.
Negative Factors
Recurring net losses and profitability pressure
Persistent net losses erode retained earnings and impair return on equity, constraining the firm's ability to self-fund expansion. Continued losses also reduce financial resilience and make meeting medium-term EBITDA and net‑debt targets more challenging without structural margin improvements.
High leverage and declining equity ratio
Elevated leverage increases refinancing and interest-rate vulnerability, limiting financial flexibility for capex or M&A. A declining equity ratio raises solvency risk during downturns and makes meeting the SPRING net debt/EBITDA ambition harder without sustained cash generation improvements.
Negative free cash flow from heavy capex
Persistent negative free cash flow reduces the firm's capacity to internally fund growth and increases reliance on external financing. Over time, this pressures liquidity, elevates cost of capital, and may force slower project ramp or asset disposals if operating cash conversion doesn't improve.
Voltalia (VLTSA) vs. iShares MSCI France ETF (EWQ)
Market Cap
€967.27M
Dividend YieldN/A
Average Volume (3M)105.11K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth1.76%
EPS Growth-234.79%
CountryFR
Employees2,030
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)-0.21
Shares Outstanding131,318,710
10 Day Avg. Volume83,079
30 Day Avg. Volume105,108
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.88
Price to Sales (P/S)1.71
P/FCF Ratio-2.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€8.50Price Target Upside15.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Voltalia Business Overview & Revenue Model
Company DescriptionVoltalia SA engages in the production of electricity from renewable energy sources. It operates through two segments, Energy Sales and Services. The company develops, constructs, operates, and maintains wind, solar, hydro, and biomass power plants. It also develops and sells projects, and procures equipment for solar power plants, as well as provides maintenance service. As of December 31, 2021, the company operated solar power plant with an installed capacity of 98 MW. It operates in Africa, the Middle East, Asia, other Europe, Brazil, and Latin America. The company was incorporated in 2005 and is headquartered in Paris, France. Voltalia SA is a subsidiary of Voltalia Investissement SA.
How the Company Makes MoneyVoltalia generates revenue primarily through the production and sale of electricity from its renewable energy projects. The company operates power plants under long-term power purchase agreements (PPAs) with utility companies and large energy consumers, which provide a stable and predictable income stream. Additionally, Voltalia engages in the sale of renewable energy certificates (RECs) and offers services related to the management and optimization of energy assets. The company also benefits from partnerships with governments and organizations that support renewable energy initiatives, which can lead to favorable financing conditions and subsidies, further contributing to its earnings.
Voltalia Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Voltalia's strategic transformation plan aimed at self-financed growth and increasing capacity, alongside maintaining a strong cash position. However, the company is facing profitability pressures with reported losses, challenges with curtailment, and negative EBITDA from service activities. Despite future objectives being set, the expectation of further losses in the second half of 2025 presents a challenging outlook.Q2-2025 Updates
Positive Updates
Capacity and Production Growth
Voltalia reported an increase in capacity in operation and construction to 3.3 gigawatts, a 7% rise from last year, with production growing by 14% to reach 2.4 terawatt-hours.
Turnover Increase
Total turnover increased by 8% to EUR 257 million, supported by a EUR 35 million contribution from the services sector.
Strategic Transformation Plan - SPRING
Voltalia introduced SPRING, a 5-year plan aimed at achieving self-financed growth of 300 to 400 megawatts per year until 2030, enhancing profitability and efficiency.
Cash Position
The company maintains a solid cash position with EUR 235 million in cash at the end of June 2025.
Future Objectives
Voltalia confirmed its operational objectives for 2025, targeting a capacity of 3.6 gigawatts and production of 5.2 terawatt-hours, with an EBITDA range of EUR 200 million to EUR 220 million by year-end.
Negative Updates
Profitability Pressure and Loss
Voltalia reported a loss of EUR 40 million for the half year, with EBITDA remaining stable at EUR 78 million. Profitability remains under pressure with significant noncurrent expenses and financial results decreasing by 7%.
Curtailment Challenges
Curtailment has been a major issue, with year-to-date curtailment reaching 14%, surpassing the forecasted 10%. The company is actively working on solutions but has not yet accrued compensation in financials.
Negative Service Activity EBITDA
The service activity reported a negative EBITDA of EUR 6.6 million despite a 50% increase in turnover, attributed to ongoing sales and M&A projects that have not yet been recognized.
Expected Net Loss for Second Half
Voltalia anticipates a more significant net loss for the second half of 2025 due to pipeline rationalization, restructuring costs, and exiting noncore activities.
Company Guidance
During the call, Voltalia provided guidance for its 2025 fiscal year, outlining several key metrics and strategic initiatives. The company reported a 7% increase in capacity, totaling 3.3 gigawatts, and an 8% rise in turnover to EUR 257 million, although EBITDA remained stable at EUR 78 million, resulting in a loss of EUR 40 million. Voltalia is embarking on a 5-year strategic plan called SPRING, aiming for self-financed growth of 300 to 400 megawatts annually until 2030. The plan focuses on improving profitability, with an EBITDA target of EUR 200 million to EUR 220 million by year-end 2025. The company plans to concentrate on core geographies and technologies, such as solar, onshore wind, and storage, while exiting noncore activities. Additionally, Voltalia aims to streamline operations to achieve an EBITDA margin of 70-72% in energy sales and 9-11% in services by 2030, with a net debt-to-EBITDA ratio target of 7.5x to 8x by the same year. The company also anticipates resuming dividend payments in 2028.Voltalia Financial Statement Overview
Summary
Voltalia shows strong revenue growth and operational efficiency, but profitability is a concern due to recurring net losses. High leverage and negative free cash flow highlight financial sustainability risks.Income Statement
Voltalia has shown a consistent increase in revenue over the years, with a notable growth rate from 2019 to 2024. However, the company struggles with profitability, as evidenced by negative net income in several years, including the most recent period. Despite this, the gross profit and EBITDA margins are relatively strong, indicating operational efficiency. The decline in EBIT margin in 2024 suggests increased operational costs impacting profitability.Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. The equity ratio has declined over the years, suggesting increased reliance on debt financing. However, the company's assets have grown, supporting its expansion. The return on equity is weak due to negative net income, which impacts the overall financial health.Cash Flow
Voltalia's cash flow statements highlight challenges in generating positive free cash flow, as seen in persistent negative free cash flow figures. Although operating cash flow improved in the latest period, the high capital expenditures create a drag on free cash flow. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio remains a concern.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 554.68M | 547.00M | 495.18M | 465.94M | 358.67M | 233.46M |
| Gross Profit | 358.22M | 490.00M | 424.18M | 96.59M | 78.77M | 85.20M |
| EBITDA | 223.87M | 235.00M | 249.00M | 153.56M | 129.61M | 85.91M |
| Net Income | -45.23M | -21.00M | 29.63M | -7.17M | -1.32M | 7.92M |
Balance Sheet | ||||||
| Total Assets | 3.97B | 3.96B | 3.82B | 3.04B | 2.11B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 235.00M | 391.00M | 318.55M | 383.56M | 302.20M | 226.40M |
| Total Debt | 2.36B | 2.26B | 1.86B | 1.31B | 1.03B | 834.42M |
| Total Liabilities | 2.86B | 2.79B | 2.43B | 1.70B | 1.38B | 1.08B |
| Stockholders Equity | 1.01B | 1.06B | 1.26B | 1.23B | 671.80M | 640.38M |
Cash Flow | ||||||
| Free Cash Flow | -122.73M | -338.00M | -578.68M | -557.34M | -306.09M | -268.18M |
| Operating Cash Flow | 149.41M | 179.00M | 115.50M | -13.93M | 100.21M | 58.38M |
| Investing Cash Flow | -398.72M | -440.00M | -682.11M | -536.39M | -300.56M | -316.50M |
| Financing Cash Flow | 164.48M | 329.00M | 495.63M | 614.22M | 268.13M | 202.20M |
Voltalia Technical Analysis
Negative
7.38
Price Trends
7.33
Positive
7.26
Positive
7.56
Negative
Market Momentum
0.15
Negative
46.17
Neutral
30.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VLTSA, the sentiment is Negative. The current price of 7.38 is below the 20-day moving average (MA) of 7.47, above the 50-day MA of 7.33, and below the 200-day MA of 7.56, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VLTSA.
Voltalia Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €1.39B | 8.95 | ― | 6.15% | -12.83% | 10.40% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | €597.51M | 13.68 | 12.51% | 1.69% | 14.77% | 33.13% | |
60 Neutral | €967.27M | -21.51 | -3.36% | ― | 1.76% | -234.79% | |
47 Neutral | €58.22M | -4.68 | -13.87% | ― | 257.28% | -21.96% | |
45 Neutral | €142.07M | -3.85 | ― | ― | 209.99% | -16.49% |
* Utilities Sector Average
FR:VLTSA
Voltalia
7.38
0.21
3.00%
FR:SCHP
Seche Environnement
76.60
-0.21
-0.27%
FR:HDF
Hydrogene de France
3.96
-0.24
-5.71%
FR:ALESE
Entech SA
8.19
2.29
38.81%
FR:ELEC
Electricite de Strasbourg SA
194.00
78.34
67.73%
FR:LHYFE
Lhyfe SA
2.96
-0.21
-6.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.